IN REPLY 

REFER TO 

DEFENSE LOGISTICS AGENCY 

HEADQUARTERS 

8725 JOHN J . KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 22060.6221 

May 23, 2013 

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS 

SUBJECT: Approved DLMS Change (ADC) 1063, Use of Appropriate Supply Condition 

Code (SCC) for Receipt of Suspended Critical Safety Items (CSis) (Supply/SDR) 

The attached change to Defense Logistics Manual (DLM) 4000.25, Defense Logistics 

Management System (DLMS) is approved for implementation. The implementation target is 

within three months of the release date for this ADC. DLA Distribution must provide the actual 

implementation date when it becomes available. 

Addressees may direct questions to the DLA Logistics Management Standards Office point 

of contact: Ms. Ellen Hilert, 703-767-0676, DSN 427-0676, e-mail: ellen.hilert@dla.mil; or Ms. 

Mary Jane Johnson, 703-767-0677; DSN 427-0677, email: mary.jane.johnson@dla.mil. Others 

must contact their Component designated representative available at: 

www.dla.mil/j-6/dlmso/CertAccess/SvcPointsPOC/allpoc.asp. 

Attachment 

As stated 

cc: 

ODASD(SCI) 

Director, 

DLA Logistics Management 

Standards Office 

SDR Subcommittee (U.S. and Security Assistance) 

Federal Recycling Program 0 Printed on Recycled Paper 
Enclosure, ADC 1063

Page 1

Attachment to ADC 1063

Use of Appropriate Supply Condition Code (SCC) for Receipt of Suspended

Critical Safety Items (CSIs)

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: DLA Logistics 

Management Standards Office; Ellen Hilert, DOD SDR System Administrator, 

ellen.hilert@dla.mil

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Receipt Processing

b. Primary/Secondary Functional Process: Supply Discrepancy Reporting

3. REFERENCES:

a. DLM 4000.25, Defense Logistics Management System (DLMS), Volume 2, Chapter 

13, Materiel Receipt, and Chapter 17, Supply Discrepancy Reporting

b. Approved DLMS Change (ADC) 158, Requirement for Prepositioned Material 

Receipt (PMR) Transactions, dated June 27, 2005 

c. ADC 1022, Procedures for Processing Depot Returns (including Receipt, Supply 

Discrepancy Report (SDR), and Revision to Time Standard for Reclassification of Supply 

Condition Code J and K Assets), dated October 19, 2012

d. DLM 4000.25-2, Military Standard Transaction Reporting and Accountability 

Procedures (MILSTRAP), Appendix 2.5, Federal Condition Code. Following is an excerpt 

providing definitions for the SCC values discussed in this PDC.

“J SUSPENDED (IN 

STOCK)

Materiel in stock which has been suspended 

from issue pending condition classification or 

analysis, where the true condition is not 

known. Includes shelf-life Type II materiel 

that has reached the expiration date pending 

inspection, test, or restoration.

 K SUSPENDED 

(RETURNS)

Materiel returned from customers or users 

and awaiting condition classification.”

4. APPROVED CHANGE(S):

a. Overview of Change: This change revises SDR procedures to eliminate an exception 

authorizing storage activity use of SCC J for suspended CSI resulting from stock screening 

during receipt processing. SCC J will be replaced by the appropriate use of SCC K in receipt 

and SDR transactions.
Enclosure, ADC 1063

Page 2

b. Background:

(1) The practice of suspending suspected discrepant CSI receipts at DLA 

Distribution Depots dates back many years. The DLA/Navy CSI Program Guidance, published 

in 2002, formally documented an agreement between DLA and the Navy on procedures to be 

employed at DLA Distribution Depots for receipt of CSI return items applicable to all such items 

not in the original manufacturer’s sealed package. These procedures specifically state: “If the 

Receipt restriction notice appears .... the inspector will visually match the receipt restriction 

message with the data on the material during the bare item inspection. If the Manufacturer’s 

CAGE is not an exact match ... or cannot be validated, then the material will be suspended into 

condition code “J” and a Supply Discrepancy Report (SDR) prepared...” 

(2) By DLA request, the exception for use of SCC J for suspended CSI with 

receipt restriction discrepancies was perpetuated to SDR guidance published under the DLMS by 

ADC 158 (Reference 3.b.). 

(3) The underlying motivation for using SCC J vice SCC K for suspended CSI 

was primarily the additional time allowed to complete research and reclassification of the 

materiel. Prior to ADC 1022 (Reference 3.c.), the reclassification time standard for SCC K was 

10 calendar days, while the standard for SCC J was 90 calendar days. The research necessary to 

provide disposition on suspended CSI would typically require much more time than was allotted 

under SCC K, and thus the exception was established. Ultimately, ADC 1022 revised the 

MILSTRAP time standards to apply consistently to SCC J and K by allocating the 50 days for 

the owner/manager to provide disposition instructions for the suspended materiel and another 30 

days for the storage activity to perform the reclassification. 

c. Describe Change in Detail: DLA Distribution will modify storage activity

procedures to employ SCC K (vice SCC J) for suspended CSI materiel returns and redistribution 

orders receipts resulting from Inventory Control Point/Integrated Materiel Manager (ICP/IMM) 

directed stock screening actions. SCC L applies for suspended CSI receipts from a procurement 

source.

d. Revisions to DLM 4000.25 Manuals:

(1) Revise DLM 4000.25 DLMS Volume 2, Chapter 17, to remove the exception 

criteria for SCC J and strengthen the requirement to use the appropriate SCC as follows. 

Changes are identified in red bold italics.

“C17.3.2.9. Quality Related Issues Identified During Distribution Depot 

Receipt. Three-position Q-series discrepancy codes have been developed to 

accommodate materiel owners with special programs requiring immediate 

visibility and notification of quality deficient (or potentially deficient) materiel 

received at the distribution depot. These codes are applicable for reporting to 

ICP/IMMs via the SDR process, based upon special inspection requests by the 

materiel owner. These reports are contingent upon pre-existing receipt restriction 

requirements that identify the National Stock Number (NSN) and specific actions 

the materiel owner expects the distribution depot to perform. Some of the specific 
Enclosure, ADC 1063

Page 3

programs that require reporting of quality-related concerns for receipts, including 

new procurement and customer returns, are: PQDR exhibits, items identified as 

customer return improvement initiative (CRII) items, critical safety items (CSI), 

items that failed under use, and items requiring First Article Testing. Report 

suspended materiel in the appropriate supply condition code (SCC) under 

DLMS/MILSTRAP procedures, to include PQDR exhibit receipts in SCC Q and 

CSI in SCC L for procurement source receipts or SCC K for non-procurement 

source receipts.”

“C17.3.6.1. New procurement materiel with other applicable 

discrepancies, e.g., missing receiving report/DD Form 250, improper packaging, 

will be placed in Supply Condition Code (SCC) L pending resolution. Exception: 

discrepant critical safety item (CSI) materiel shall be placed in SCC J regardless 

of whether it is new procurement or returned materiel. Initial SDR shall include 

estimated costs of disposal or repackaging in the remarks section and complete 

the appropriate data element entries for electronic submission.”

(2) Revise DLM 4000.25 DLMS Volume 2, Appendix 3, Supply Discrepancy 

Report Relevant Data Elements, to improve the narrative explanation for Discrepancy Code Q77.

Q77 New procurement receipt, customer return, or redistribution order receipt

to of stock screen item identified as a suspected critical safety item (CSI)

discrepancy

e. Transaction Flow: Not applicable. There are no changes to current transaction flow.

f. Alternatives: None identified.

g. Proposed Change 1063 Staffing Response:

Service/Agency Response/Comment Resolution

1. DLA Concur. Noted.

2. Army Concur. Noted.

3. Navy Concur. Noted.

4. Marine Corps Concur Noted.

5. Air Force Concur Noted.

6. USTRANSCOM Abstains. Noted.

5. REASON FOR CHANGE: To properly align actual SCC assignment with the intended use 

under DOD procedures. Materiel must be properly identified for audit readiness.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Eliminates an exception process that is no longer needed and promotes 

appropriate use of SCC J and K. Removes inconsistent business rules within DLMS,

MILSTRAP, and SDR procedures.
Enclosure, ADC 1063

Page 4

b. Disadvantages: Requires retraining and may impact programming.

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Target implementation 

within 3 months of a signed ADC.

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: N/A

9. IMPACT:

a. New DLMS Data Elements: N/A

b. Changes to DLMS Data Elements: N/A

c. Automated Information Systems (AIS): There is impact to the DLA Distribution 

Standard System; no other known system impact.

d. DLA Transaction Services: N/A

e. Non-DLA Logistics Management Standards Publications: Internal 

Service/Agency guidance and trading partner agreements must be updated to remove the 

inappropriate use of SCC J for suspended CSI materiel.